Aberdeen Investments stated that Federal Reserve Chair Kevin Warsh maintained an optimistic view on the U.S. economy at the latest policy meeting, but also reiterated that inflation remains too high.
"We still expect the Fed to raise rates further in December and March, with the terminal rate reaching 4.25%-4.50%. We believe these are more like preventive hikes rather than aggressive measures to suppress demand in response to high inflation," wrote Michael Langham, emerging markets economist at Aberdeen Investments, in a report.
"The U.S. midterm elections will have little impact on changing this near-term outlook."
Aberdeen Investments' core expectation is that in the midterm elections, Democrats should capture both the House and the Senate, although the Senate race is expected to be extremely tight.
More broadly, Aberdeen Investments believes the midterm elections will not constrain the U.S. from launching another strike against Iran.
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